Canada minister says Northern Gateway line can still go ahead

OTTAWA (Reuters) - Proponents of the planned Northern Gateway pipeline from Alberta's oil sands to Canada's West Coast can still carry the day even though the project has generated a wave of opposition, the country's natural resources minister said.

"I am still of the belief that we can get this done, on the assumption, of course, that it passes regulatory muster," Joe Oliver told Postmedia News in an interview published on Thursday.

"If the conclusion is this project can be safe for Canadians, safe for the environment ... that, I hope, will go a long way in respect at least to people who are kind of open-minded to the facts."

Both the federal and Alberta governments, as well as the oil industry, are keen for the C$6 billion Enbridge Inc ENB.TO pipeline to be built to enable the increasing supply of crude from the oil sands to satisfy thirsty Asian markets.

A glut of Albertan oil relative to current pipeline capacity has forced deep discounts that are taking a toll on provincial and federal coffers as well as oil company profits.

But the Liberal government of the province of British Columbia, the main opposition New Democratic Party, aboriginal groups and environmental groups have raised strong opposition to the 550,000 barrel-per-day (bpd) line.

It is currently undergoing an environmental review, which is to conclude at the end of the year. Oliver said Ottawa had much work to do to convince British Columbians of the value of the pipeline but said that if environmental concerns were allayed, the provincial government should not be opposed.

Ian MacDonald, editor of Macdonald-Laurier Institute's Inside Policy magazine, said in an op-ed piece on Thursday that Canadian Prime Minister Stephen Harper should convene a meeting of provincial premiers and aboriginal leaders to push for pipelines as part of a Canadian Energy Strategy.

The difficulties in getting approval for pipelines from Alberta have prompted a proposal to send oil by rail to the Valdez terminal on Alaska's southern coast, though studies show rail is proportionately more likely to record spillages and accidents.
Continued...